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Spotify (SPOT) Rises As Market Takes a Dip: Key Facts

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The latest trading session saw Spotify (SPOT - Free Report) ending at $375.40, denoting a +1.86% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.93% for the day. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 1.53%.

Shares of the music-streaming service operator witnessed a gain of 7.48% over the previous month, beating the performance of the Business Services sector with its gain of 1.6% and the S&P 500's gain of 2.17%.

Market participants will be closely following the financial results of Spotify in its upcoming release. The company's upcoming EPS is projected at $1.79, signifying a 397.22% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.38 billion, indicating a 19.83% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.24 per share and revenue of $17.1 billion, indicating changes of +311.53% and +19.36%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Spotify. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 2.15% fall in the Zacks Consensus EPS estimate. At present, Spotify boasts a Zacks Rank of #4 (Sell).

In the context of valuation, Spotify is at present trading with a Forward P/E ratio of 59.09. This indicates a premium in contrast to its industry's Forward P/E of 24.14.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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